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Monday, November 10, 2008

MLPS down on the index by 1.50 and the dow is down 40 at this juncture. I think by days end at the rate this tape is going we will be down 2 or 3 hundred on the dow imho. No question that mlps are pricing in distribution cuts in many issues. Constellation Partners (CEP) is down to 6 dollars and small change. Atlas Pipeline (APL) is hovering at 15. Many more mlps are either at or approaching 52 week lows. Only the bigger cap mlps like Kinder Morgan (KMP) Nustar (NS) and Oneok (OKS) among the very few who have held their October 10th climax low bounces.

The patient is flatlining.

5 comments:

Anonymous said...

Looks like another "forced seller" in the market today dumping E&P and G&P names...

It never ends...

Anonymous said...

Its only a matter of time before we plunge again. There is too much leverage in the system which still needs to come off. It is obvious by the schizophrenic trading action. When prices move by 10-20% intraday day in and day out, its not fundamentals, its techinicals.

Are there cheap stocks? Yes, but why buy today?

Anonymous said...

We can't assumed that everything is forced selling when fundmentals have deteriorated. I think they are pricing in some pretty lousy scenarios down here, but I don't think it's purely deleveraging.

Anonymous said...

Look at the volume charts for most MLPs. There has been an explosion in volume over the last 30-45 days. I think that indicates "forced trading" of some kind...

Anonymous said...

It's the credit crisis imho:

GS under $70.00 a shares new annual low, AIG's expanded 150 Billion bailout, FNM's 29 Billion loss, DB Cuts GM to sell price target 0, Reits hammered today, Obama honeymoon over.

MLPs have issues as to the cost and availability of credit as well as a structure that limits flexablity ( maybe distros need to be cut to conserve capital ) , but LPs have distro rights written in "stone".

HS